Ethereum Just Posted a Strong Weekly Close as Analysts Eye Upside
- Ethereum has been consolidating alongside Bitcoin for the past few days, with bulls and bears currently locked in a heated battle as its price trades around $450
- Where the market trends next will depend largely on whether or not Bitcoin can stabilize or move higher
- Global stock market volatility as a result of the vaccine news may also play a role in BTC’s price action in the week ahead
- Because ETH is a higher beta play, there’s a strong possibility that it will outperform BTC on an upswing and underperform it on a downswing
- One analyst is pointing to a few immense signs of strength that Ethereum has been flashing as of late, noting that it may be bottoming against Bitcoin
Ethereum has been struggling to match the gains seen by Bitcoin throughout the past few weeks. This trend has started shifting, with its recent rally from lows of $380 to highs of $460 significantly bolstering its technical outlook.
Still, the cryptocurrency has a way to go before it can match Bitcoin’s gains over the past month or so.
One trader is now noting that he sees some strong indications that Ethereum is bottoming against its Bitcoin trading pair.
Ethereum Consolidates Alongside Bitcoin
At the time of writing, Ethereum is trading down just under 2% at its current price of $446. This is around the price at which it has been trading throughout the past few days, with buyers unable to firmly shatter the $450 resistance.
This level remains vital for the cryptocurrency, and flipping this resistance into firm support could be all that it needs to see another leg higher to $500+.
Whether or not it can break above this level will likely depend primarily on Bitcoin and the rest of the crypto market.
ETH/BTC Posts Strong Weekly Close, But Weakness Remains
While sharing his thoughts on where Ethereum might trend in the near-term, one analyst explained that although it posted a strong weekly close against its Bitcoin trading pair, there’s still signs of weakness.
He contends that the bottoming process is just beginning, and there’s still work to be done before it fully bottoms.
“Strong weekly close for ETH BTC. I think the bottom process has started right now. Daily trend is still very much bearish and it’ll likely take some time to establish a range and reset before a continued uptrend can come along. Holding .0285 would be a good start.”
Image Courtesy of Smokey. Source: ETHBTC on TradingView.
The coming few days should provide insight into Ethereum’s outlook against Bitcoin, as there’s a good chance that market volatility will ramp up.
Featured image from Unsplash. Charts from TradingView.